OCC Clears Record-Setting 9.93 Billion Total Contracts in 2021
Securities lending average daily loan value hits record $147.7 billion; highest December on record for U.S. listed options
OCC via Businesswire
OCC, the world’s largest equity derivatives clearing organization, announced today that it set new annual cleared contract volume records for the U.S. exchange-listed options industry. In 2021, OCC cleared 9.93 billion total contracts (options and futures) and 9.87 billion options contracts. These numbers surpass the previous records, set in 2020, of 7.52 billion total contracts and 7.47 billion options contracts. Compared to 2020, OCC had a 32.0 percent increase in total contracts cleared and a 32.2 percent increase in options contracts cleared.
Oil bulls return as the threat from Omicron recedes
John Kemp – Reuters
Portfolio investors have started to rebuild bullish positions in the oil market, reassessing earlier fears about the likely impact of the Omicron variant of coronavirus on major economies and passenger aviation in 2022.
Hedge funds and other money managers purchased the equivalent of 54 million barrels in the six most important petroleum futures and options contracts in the week to Dec. 28.
Rokos’s Investors Sign Up for a Wild Hedge Fund Ride
Mark Gilbert – Bloomberg
Handing $1 billion to a hedge fund manager who lost a record 26% last year might seem like the ultimate example of throwing good money after bad. But the customers bankrolling an expansion of the $12 billion firm run by billionaire Chris Rokos presumably know exactly what they’re doing — backing an investor who swings for the fences in the expectation that the good years will overcompensate for the bad.
Rokos Capital Management raised $1 billion of fresh capital this week. Investors are signing up for a rollercoaster ride that’s become even wilder in the past few years.
Hedge funds struggle to lure new money as performance lags
Laurence Fletcher – Financial Times
Big rallies in US tech behemoths and a series of painful market jolts have disrupted many hedge funds’ attempts to lure back investors who have deserted the sector in recent years.
Hedge funds gained 8.7 per cent on average from January to November 2021, according to data provider HFR. That marks their third consecutive year of gains, but trails by some distance the US S&P 500 index’s 24 per cent total return over that period.
Wrap-up article: the changing face of liquidity after COVID
Carmella Haswell – Eurex
Panellists in a Eurex webcast explore the new liquidity provision architecture after the pandemic, the changing dynamic between the buy-side and independent market making firms and examine which participants will make up the new market eco-structure.
The Top OpenMarkets Stories of 2021
Evan Peterson – CME Group
Financial and commodity markets revealed some unexpected trends in 2021. As the year ends, our look back on the most-viewed OpenMarkets stories includes some of the surprising (lumber) and more anticipated (economic recovery) events to emerge.
CME Group Reports 2021 Annual, Q4 and Monthly Market Statistics
Overall ADV reached a record 19.6 million contracts in 2021, up 3% for the year and up 26% for both Q4 and the month of December; Interest Rate futures and options ADV up 15% for the year, 56% in Q4, and 41% in December
SOFR contracts saw triple-digit gains
CME Group, the world’s leading and most diverse derivatives marketplace, today reported its full-year, Q4 and December 2021 market statistics, showing it reached a record average daily volume (ADV) of 19.6 million contracts during the year, an increase of 3% over 2020. ADV increased 26% in both the fourth quarter and the month of December, to 20.5 million contracts and 18 million contracts, respectively. Market statistics are available in greater detail at https://cmegroupinc.gcs-web.com/monthly-volume.
Boerse Stuttgart Generates 2021 Turnover Of Around EUR 107 Billion – Exchange-Traded Products Generate Record Turnover // High Trading Volume In Equities And Securitised Derivatives
Based on the order book statistics, turnover from all trading activities at Boerse Stuttgart amounted to around EUR 107 billion in 2021 – only 4 percent less than in the extremely high-turnover year 2020. Trading in equities generated turnover of over EUR 28,5 billion in 2021. This was just slightly more than 2 percent short of the previous year’s record turnover. German equities contributed around EUR 13,8 billion to this total and international equities over EUR 14,7 billion. The most frequently traded German shares in 2021 were Daimler, TUI and Volkswagen. Turning to international shares, BioNTech, SunHydrogen and CureVac were the most frequently traded.
Nasdaq Nordic And Baltic Markets: Annual Trading Statistics 2021
Nasdaq Nordic today publishes annual trade statistics for the Nordic1 and Baltic2 markets. Below follows a summary of the trade statistics for full year 2021: The share trading increased by 7.1 % to a daily average of 3.987bn EUR, compared to 3.723bn EUR in 2020. The average number of trades per business day increased by 5.8 % to 901,009 as compared to 851,810 in 2020. Derivatives trading decreased by 7.7 % to a daily average of 348,199 contracts, compared with 377,424 contracts in 2020.
Regulation & Enforcement
CFTC Orders Event-Based Binary Options Markets Operator to Pay $1.4 Million Penalty
The Commodity Futures Trading Commission today entered an order filing and simultaneously settling charges against Delaware-registered Blockratize, Inc. d/b/a Polymarket, based in New York City, for offering off-exchange event-based binary options contracts and failure to obtain designation as a designated contract market (DCM) or registration as a swap execution facility (SEF).
Legendary investor Byron Wien calls for gold to surge 20% this year, as inflation and market volatility drive a hunt for safe havens
Harry Robertson – Business Insider
Legendary investor Byron Wien has predicted that gold could make a surprise 20% surge this year as investors flock to the yellow metal for protection against inflation and market volatility.
The vice chair of investment giant Blackstone’s private wealth solutions group said he thinks gold may well reclaim its title as a safe-haven asset, writing in his closely watched annual Ten Surprises newsletter.
Big pension funds dumped the wrong things last year — as usual
Brett Arends – MarketWatch
Well, the geniuses running the world’s top pension funds did it again.
Once again they managed to avoid investing in the things they should have been investing in, while investing in things they shouldn’t have been investing in — with the all-too-predictable result that the insight you really wanted to hear a year ago wasn’t a list of the experts’ biggest picks for 2021, but their biggest pans.